Liberal migration and population policy responses to demographic trends
Speech by Hon. Kyosti Virrankoski, MEP
CALD-ALDE-LI Meeting
22 June 2006, Manila

Madam chairman, to my liberal colleagues, friends, ladies and gentlemen.

The development of demographic structure in the EU has been alarming. The fear of old fable is constantly growing. At the same time the fear of children in the population is going down. You can see the demographic pictures of the EU on the left side. Today, the structure is quite old, therefore, that the people who are in the working age at the age of working life are the biggest one. But you can see that the generation which is now young is just born is about 2 million people smaller than the biggest generation which is at the age of 40 years. So, just after the second veritable the birth rate was exceptionally high. They got the so-called “The Big Generation”.

Although economic conditions, the poor families got children, but along the time when the standard of living become higher and higher the amount of children begun to go downwards. That concerns all the developed countries. Nowadays, we have ever reached the point when the amount of households of a single person is becoming more and more dominant. Young people delay their intentions to found a family and have children. A remarkable exception is the United States. There, their birth rate is much higher for example in the EU. So what is the reason? The reason seems to very difficult to explain. Partly they are connected to the economic circumstances but not very much because poor people seem to have more children than the richer ones. The way of living seems to be a dominant factor. If you try to create a career you have to concentrate on that especially for women it is then very difficult to combine a career to family and children. Also, everyone wants lasting studies delays the foundation of family.

The message the EU countries had taken to overcome the many difficulties which the low birth rate cause is very spreading. Because this politics must mostly belong to the sole competence of the member states. I can only mention only some split examples. Message to enhance economic bases of children, families. They’re concerned mainly direct support to children, taxation measures, subjective rights to get a seat in a nursery, etc. Message to help parents: parental leave, parental allowance, mother’s legal rights to preserve the job during the parental leave, etc. At the same time, the health care has improved dramatically, and the general work has decreased. People reached higher and higher ages the fair age population has decreased.

The message the EU countries have taken very greatly. Most dominant are: to increase the age of retirement, to promote the health conditions of the elder people, to promote the care of the elder people at home and to arrange proper public care. The increase in share of old people are decreasing, share of children create a great worries as you can see on the second slide. It is probable that the old age deepens the ratio. That means the ratio between retired people in relation to the people at the working age will double from currently to 0.25 to 0.5 in 2050. As to the proposal of the population, that will be above the age of 80. Doubling over the coming decades is virtually certain and probably it will increase by the fact of three or more. That is on the third slide.

Today, we have people over 80 years, about 5 % of the population and in the nearest future the share will be about 10 % and even it might be 15%. The increase cost of the care of all the people have to be funded by ever decreasing fear of active people. This funding should be managed by pension funds. It’s kind of money during the active life of people in order to pay the pensions after the retirement. These funds have become dominant player in the larger market because they are the biggest investors in the world. Perhaps, they are able to carry responsibility if Big Generations are to retire. But one problem remains, what are the practical consequences in this pension funds begin to sell their shares, equities and other properties in order to pay pensions. What kind of influence does it caused in the stock exchanges? On the other hand, these funds pay on the part of the future cause. The increasing cost of social security and health care has to be paid by the tax payers who exist then. Is it probable and possible? And what about the future of the economy? Even today we have a lot of skilled workers. How can we safeguard that we have enough skilled workers in the future. If they do not have enough children then the only opportunity is migration. For example, some decades ago Sweden had a great lack of labor force its industry grows well. In those days, our big about half of our generation in Finland became adult. Nearly half a million Finns went to Sweden, nearly 10 % of our population. Sweden caught immigration also from other countries so that nearly 40 % of its net increase in population was due to immigration. That was a real win-win situation. They all won. Finns and others got worked, had food salaries and Swedish industry flourished and the GDP of Sweden increased strongly. Today, the migration policy is very topical in the EU. On one hand we need more people to come to balance population aging and to maintain our current economic development. On the other hand, must save influx of immigrants maybe met by the population with mix feelings. We should again general acceptance for the increase generation.

Nowadays, Europe has become one of the main host reception continents for migration flows mainly from Africa and Asia. Massive immigration contents also illegal immigration and trafficking of human beings. These alignment together with the fact that this type of migration flow of immigration or migration flow occurs in dramatic conditions which led to a high number of death. Deaths have led the members’ states to start developing a common immigration policy and let delegate part of its powers to the European Union. Another reason that has led to development is the fact that the EU is based on the principle of freedom of movement of people in the EU which infuse that EU citizens have the right to circulate freely from one member state to another in the EU. Within the second area, internal barriers and controls on persons at the frontiers between member states had consequently been progressively abolished. But not only European citizens can circulate freely in the EU territory also immigrants with their regular permit of residence obtained in the member state can move from one member state to another. The lift of internal borders. Border control also has had a consequence that illegal immigrants having managed to reach the territory of member state would circulate in the EU. This issue has pushed the member states to realize that the EU need a common policy on immigration and that migration policies of the member states as well as the fight against illegal immigration carried effects and consequences for the EU as a whole. At the same time, member states who have an external borders of the EU have constantly asked for support from other member states and EU message to support their efforts to caught illegal immigrations given the fact that they provided with a task of control of common EU borders. Of these reasons have hosted the EU to develop a proper European policy on immigration but although the institution of possibilities to develop a proper EU policy on immigration are there still the progress is low. For the citizens still have to be adopted by unanimity which leads to a situation where there are extremely difficult to reach. Member states have nonetheless manage to reach a dream at the European level on theories of its denizens. The EU has recently established a European agency charts with issues which links to a management of external borders. Front text is providing member states with expertise and technical assistance in case of massive influx of immigration. The EU is also particularly active on policy to fight illegal immigration and has adopted a series of measure in this field of legal and operative nature. The fight against trafficking in human beings is also another part of this policy and a common definition and sanctions have been adopted while European policy office cooperates with national policies to dismantle criminal organizations. To date, the EU has not adopted a framework for legal migration with exceptions of short- term, these as for students and researchers. The member states have preserved their competence. Mechanisms to establish exchange of information on national migration policies has been established while specific policies to grant residence permits for students, researchers, workers as well as for family unification have been developed.

 Ladies and gentlemen, from the liberal point of view, is Europe doing enough on developing a common migration policy? I believe the answer is NO. Migration policy is not a policy of safeguarding borders. First of all, positive sides of migration have not been correctly emphasized. Europe and Europeans need not preferably immigrants if they won’t to keep current economic and social welfares standards. For example, today we have 16 million non-EU nationals in the European Union that means 5 % of the whole population. For example in Germany, we have 4.7 million non-EU nationals and in France 2 million and that reflects the fact that migration is inevitable for the European Union. Secondly, single member states cannot act properly and effectively alone to solve global and common problems. Thirdly, current policies on integration and development are not strong enough and more funds and assistance should be provided in this field. Europeans, as all people should keep in mind their history which comprises migrations to escape poverty and prospect for better life. This has always happen and always will happen. This is by, we have to work together to find common solution to common problems and manage together in a human manner that are common to mankind.

In this respect, the Liberal approach is inevitable and with Liberals have huge tasks ahead of us.

Thank you very much!